Issued by the Real Estate Buyer Agents Council of the National Association of Realtors
09/13/2007
FHA TO HELP DELIQUENT BORROWERS The FHASecure plan is designed to prevent foreclosures among homeowners who fell behind because the rates went up on their adjustable-rate mortgages. About 60,000 "delinquent-yet-creditworthy" mortgage borrowers will be able to refinance into FHA-insured home loans in the next year or so, an official with the Federal Housing Administration says.
Key factors of the FHA bailout plan: 
• FHASecure is geared toward the homeowner with an ARM who was paying on time until the rate was reset and the monthly payment went up. • There are loan-size limits that make these mortgages unworkable for high-cost markets, such as most of California. • Borrowers will need at least 3 percent equity, the FHA won't help people who owe more than their houses are worth. • The application deadline is the end of 2008.
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